Factory/Manufacturer

In foreign trade, 'factory' (or manufacturer) typically refers to the entity that produces and manufactures goods, serving as the source of the supply chain. This term is commonly used to describe the origin of goods, factory audits, price negotiations, and confirmation of delivery capabilities. Usage scenarios include: customers inquiring about supplier types, signing procurement contracts, arranging inspections, etc. Note: A factory differs from a trading company; a factory directly controls production but may lack export qualifications or a foreign trade team. Compared to 'supplier,' a factory emphasizes the production phase. Unlike an 'exporter,' which can be a trader and not necessarily a factory, a factory is the actual producer. Additionally, under FOB terms, the factory is often the delivery location, but it is important to verify whether the factory has customs declaration qualifications. Foreign trade professionals should verify the authenticity, production capacity, and compliance of the factory to avoid intermediaries posing as factories.